According to the latest NAR Member Profile, REALTORS spent a median of $620 marketing their business in 2013, an increase from 2012. While one can chalk up the increase in spending to a more competitive market, it’s important to get the most out of the money that you spend. What’s the best way to get the word out about your business? Referrals.
Working by referral allows the service you offer to your clients to speak louder than any purchased advertisement. Studies show that people are more likely to use a service that is recommended by a friend. After all, if a friend received great service and was happy with the experience, chances are the person will have a similar experience.
Promotion, Referral Style
The focus of relational marketing is on providing value to your clients so that they are more likely to turn to you for their real estate needs and refer you to their family, friends and associates. In fact, according to NAR, the majority of sellers found their agents through a referral from a family member or friend.
Instead of dedicating the majority of your resources to buying ad space on the radio or putting your face on bus benches, you’d put it toward creating real estate marketing materials that provide valuable information to your clients—the people with whom you have an established relationship—and follow it up with phone calls, emails, personal notes and Pop-Bys. This means that you need to make fewer cold calls, if any, and will instead base your marketing strategy on doing what you do best—building relationships with and serving your clients. What’s better than that?
According to Brian Buffini, agents should spend 70% of their resources on relational promotion, 20% of their resources on conventional promotion and 10% on digital promotion (i.e., social media, blogging and their website). This gives you an opportunity to build your relationships with your clients, while also keeping a hand in traditional promotion strategies to get the attention of potential clients who wouldn’t find you any other way.
Referral Promotion the Right Way
Working by referral only works if you remember to connect with the people in your database. Referral Maker® real estate CRM software makes it easy to connect with your best clients by reminding you when to contact them, organizing your daily proactive lead generation activities and giving you valuable, time-tested dialogues to get the conversation started. Visit Referral Maker for more information and to start your 30-day free trial.